People with big bags of Ethereum, go collateralise it and farm with stablecoins

Hi!

Over the last months I was exploring DeFi where you can use the ETH that you own, bridge it to an ecosystem and them use it as collateral to borrow stablecoins with. 9/10 times you get paid to borrow (borrow APR < token distribution APR) and then you can create yield on yield if you put the stable stack into a USD pool.

You can in some cases create yield on yield on yield on yield, with tokenised yield bearing assets and token receipts which you can use as collateral on another DApp.

This is great for a HODL'er because you can just let the assets sit. The only thing you need to worry about is liquidation price, but if your loan to value is 20ish% then you're fine. Even if the market dumps you can always repay your loans

Anyway, thanks for reading <3